Question

Steve invested $ 10,000 in a savings bank account that earned 2% simple interest. Find the interest earned if the amount was kept in the bank for 4 years.

Answer 1

Given:

Principle (P) = $ 10,000

Time period (T) = 4 years

Rate of Interest = 2% = 0.02

Now:

Formula to be used:

$\huge\boxed{\sf{I= P \times T \times R}}$

Now:

Plugging these values in the simple Interest formula:

We get:

$\sf{I= P \times T \times R}$

$\implies$ 10,000 × 4 × 0.02

$\implies$ 40,000 × 0.02

$\implies$ $ 800

Therefore:

Interest earned for the investment = $ 800

Answer 2

Heya dear!

Given:-

Principle = $ 10,000

Rate = 2%

Time = 4 yrs

Simple interest

Simple interest =

$\frac{p \times r \times t}{100}$

$\frac{10000 \times 2 \times 4}{100} \\ = 100 \times 2 \times 4 \\ = 800$

Answer - $ 800